Its called the dawn phenomenon.
Although phenomenon is probably the wrong word because it's a totally natural thing that probably been quite instrumental in our survival as a species.
Just as we are getting ready to wake the release of certain hormones signal our livers to release some of its stored glucose into our blood.
The purpose is to give us energy after our overnight fast so we are able to go chase down some breakfast.
It happens to everyone, it's been happening to you your whole life. The difference is that now you have developed T2 you can't use that glucose your liver has so thoughtfully provided, so it causes your blood sugar levels to rise. Before T2 you would have just used up that glucose, and of course you weren't testing so you wouldn't have noticed it anyway.
It's not new sugar, it has been stored away in your liver where your glucose monitor can't see it, you only get to see it when it moves out of storage.
What can you do? Well not a lot really, you can't try to fight millions of years of evolution, the best you can do is concentrate on keeping your after meal levels as normal as possible, exercise and maybe some intermittent fasting can help reduce the amount of glucose you have stored. Which hopefully reduce the severity of your dawn phenomenon